Corio Reports Record Revenue for Fourth Quarter and Fiscal Year 2002; Application Management Services Revenue Up 61% from Prior Quarter and Up 62% from Fourth Quarter 2001.Business Editors/High-Tech Writers SAN CARLOS San Carlos (săn kär`lōs), residential city (1990 pop. 26,167), San Mateo co., W Calif.; inc. 1925. The chief manufactures are plastic products, hardware, and machine parts. , Calif.--(BUSINESS WIRE)--Jan. 28, 2003 Corio Corio may refer to
cRIO Compact Reconfigurable Input Output (National Instruments) ), a leading enterprise application service provider, today reported financial results for the quarter and year ended December December: see month. 31, 2002. Total revenue for the fourth quarter of 2002 was $17.8 million, an increase of 36% from $13.0 million for the fourth quarter of 2001. Application management services revenue for the fourth quarter of 2002 was $15.1 million, representing a 61% increase from the prior quarter and a 62% increase from $9.3 million for the fourth quarter of 2001. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments was $51.7 million compared to $51.8 million at September 30, 2002. Cash generated by operations during the fourth quarter of 2002 was $2.0 million, compared with cash used in operations of $3.9 million during the quarter ended September 30, 2002. "We are very pleased to announce record revenue and strong growth in our core applications management business," said George Kadifa, chairman, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. at Corio. "Furthermore, we have successfully completed the integration of Qwest's ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja). business into our operations. We have maintained a strong cash balance, and our path to profitability remains on track." Total revenue for the year ended December 31, 2002 was $56.1 million, an increase of 9% from $51.6 million for the prior year. Application management services revenue was $43.6 million, a 19% increase from $36.7 million for the prior year. EBITDA for the year ended December 31, 2002 was a loss of $21.7 million, or $0.41 per share. These results compare to an EBITDA loss of $46.2 million, or $0.92 per share for the comparable period last year. Net loss for the year ended December 31, 2002 was $34.8 million, or $0.66 per share, compared with a net loss of $63.9 million, or $1.27 per share, for the comparable period last year. Revenue from customer contracts acquired as part of the September 2002 acquisition of Qwest's ASP business was $8.7 million in the fourth quarter of 2002 and $9.2 million for fiscal year 2002. First Quarter 2003 Outlook: -- Revenue is expected to be between $17.5 million and $18.5 million for the quarter. -- EBITDA is expected to be a loss of between $1.0 million and $2.0 million for the quarter. During the fourth quarter, Corio experienced important new customer bookings as well as renewals of existing customer contracts. They include: -- A Fortune 100 financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company awarded Corio a contract to upgrade and manage its global purchasing system and supply disaster recovery services based on the Corio Full Service delivery model. -- A Fortune 50 pharmaceutical company selected the Corio OnSite delivery model to provide application management services for its ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. systems. -- A leading stock exchange selected the Corio OnSite delivery model to support heir ERP and human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. systems. -- Corio was selected to supply a branch of the Department of Defense applications management and infrastructure for the development of future systems -- The California State Automobile Association The California State Automobile Association is a motor club dedicated to improving roads, proposing traffic laws and improvement of overall driving conditions. It was founded in 1907 as an offshoot of the Automobile Club of Southern California (ACSC) to serve members in Northern (CSAA CSAA Child Study Association of America. ), the AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. affiliate serving over 4 million members in Northern California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , Nevada and Utah, renewed its Corio Full Service enterprise ASP contract. -- Arctic Slope Regional Corporation Arctic Slope Regional Corporation, or ASRC, is one of thirteen Alaska Native Regional Corporations created under the Alaska Native Claims Settlement Act of 1971 (ANCSA) in settlement of aboriginal land claims. (ASRC ASRC Arctic Slope Regional Corporation ASRC Asynchronous Sample Rate Converter ASRC Advanced Simulated Radar Client ASRC American Studies Research Centre ASRC Alabama Society for Respiratory Care ASRC Arkansas Society for Respiratory Care ), a natural resources based company that represents the interests of Alaskan natives, renewed its Corio Full Service contract which powers its shared services shared services, n.pl the administrative, clinical, or other service functions that are common to two or more hospitals or their health care facilities and used jointly or cooperatively by them. strategy to supply financial, human resources and payroll applications for ASRC's 6,000 employees. During the quarter, Corio was awarded a GSA (1) (Global mobile Suppliers Association, Sawbridgeworth, U.K., www.gsacom.com) A membership organization of suppliers of GSM products and services. Its goal is to promote GSM as the worldwide mobile communications standard. See GSM Association and GSM. Federal Supply Schedule by the US Government General Services Administration The General Services Administration (GSA) was established by section 101 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C.A. § 751). The GSA sets policy for and manages government property and records. enabling Corio to offer ASP products and services to Federal agencies worldwide. Corio also announced that 90 customers are live using Corio iSRVCE, a technology resource management application (TRM). Users may access Corio iSRVCE twenty-four hours a day to manage corporate IT processes through one cohesive cohesive, n the capability to cohere or stick together to form a mass. system. Corio iSRVCE improves IT productivity by increasing visibility and control over each layer of the managed enterprise system. Also during the fourth quarter, Corio successfully completed the integration of Qwest's ASP business into its operations. As previously announced, Corio completed the purchase of all the ASP assets of Qwest Cyber.Solutions LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (QCS QCS Quadro Comunitario di Sostegno (Italian: Community Support Network) QCS Quality Control System QCS Queensland Core Skills (exam for Australian schools in Queensland) ), a subsidiary of Qwest Communications
In December, the company announced Corio India, a new subsidiary designed to enable Corio to further reduce the cost of managing enterprise applications through an integrated offshore model. Corio India will augment aug·ment v. aug·ment·ed, aug·ment·ing, aug·ments v.tr. 1. To make (something already developed or well under way) greater, as in size, extent, or quantity: overall support capacity, facilitate 24x7 and enable "around the sun" support coverage for Corio's growing base of global customers. Corio will discuss its recent results in a telephone conference call today at 2:00 p.m., Pacific Time. Interested parties may listen to the conference call via live broadcast over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at http://www.corio.com/ir or at 719-457-2638, pass code CORIO. For those unable to participate in the live call, a replay will be available beginning at 5:00 p.m. pacific time after conclusion of the call and continuing through February 4, 2003. The replay number is 719-457-0820, confirmation code 648437. A replay of the conference call will also be available for 30 days on the Company's Web site. About Corio Corio is a leading enterprise application service provider (ASP). For a fixed monthly fee, Corio manages leading applications from PeopleSoft, Oracle, SAP, Ariba and Siebel Systems Siebel is a brand name of Oracle Corporation. Siebel Systems, Inc., founded by Thomas Siebel in 1993, was principally engaged in the design, development, marketing and support of CRM applications. . Corio provides applications management, consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" , and iSRVCE technology resource management (TRM) software. Additional information about Corio is available at www.corio.com. Corio is a registered trademark of Corio, Inc. Applications on Demand, iSRVCE and SRVCE are trademarks of Corio, Inc. All other product and company names mentioned herein may be the trademarks of their respective owners. FORWARD-LOOKING STATEMENTS forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : Matters discussed in this release involving expectations, beliefs, plans, projections, intentions, future events or strategies are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , Section 21E of the Securities and Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, and are made under their safe-harbor provisions. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Forward-looking statements herein include statements regarding Corio's future financial and operating performance including specifically the outlook for the first quarter of 2003, future efficiencies in our business, services to be performed for certain customers, the benefits to Corio of the QCS asset purchase, and the benefits to Corio and its customers of Corio India and iSRVCE. Some of the specific factors that may cause actual results to differ include, among others: the fact that Corio operates in a new industry with a rapidly-evolving business model, the fact that the structure of relationships may change and relationships may terminate, the fact that Corio may change its strategy regarding Corio India and iSRVCE, the fact that Corio may lose important customers and that customers may not pay Corio as expected, and the fact that visibility into future financial and operating performance in the current environment is poor. Additional risks that could cause actual results to differ materially from those projected are discussed in our public filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . Corio undertakes no obligation to publicly release the results of any revision to these forward-looking statements that may be made to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof or to reflect the occurrence of unanticipated events.
CORIO, INC.
BALANCE SHEETS
(in thousands)
(unaudited)
December 31, December 31,
2002 2001
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 26,908 $ 36,317
Short-term investments 17,031 41,831
Accounts receivable 6,109 3,818
Prepaid expenses and other assets 3,421 1,875
------------ ------------
Total current assets 53,469 83,841
Restricted cash 7,717 7,849
Property and equipment and other assets 19,106 21,600
------------ ------------
Total assets $ 80,292 $ 113,290
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 19,484 $ 16,617
Deferred revenue 2,636 1,969
Other current liabilities 4,732 7,506
------------ ------------
Total current liabilities 26,852 26,092
Long-term liabilities 4,025 5,859
------------ ------------
Total liabilities 30,877 31,951
Stockholders' equity 49,415 81,339
------------ ------------
Total liabilities and stockholders' equity $ 80,292 $ 113,290
============ ============
CORIO, INC.
STATEMENTS OF OPERATIONS (1)
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Twelve Months Ended
December 31 December 31
---------------------------------------
2002 2001 2002 2001
------- -------- -------- --------
Revenues:
Application management
services $15,142 $ 9,350 $ 43,559 $ 36,731
Professional services and
other 2,626 3,674 12,585 14,841
------- -------- -------- --------
Total revenues 17,768 13,024 56,144 51,572
Costs and Expenses:
Application management
services 16,029 9,009 43,053 40,416
Professional services and
other 3,211 3,567 13,794 16,496
Research and development 1,214 1,951 6,306 9,112
Sales and marketing 2,023 3,644 10,489 21,753
General and administrative 3,014 4,252 11,686 21,066
Restructuring and impairment
charges -- 2,423 4,036 3,837
Amortization expenses 1,154 2,411 2,868 5,864
------- -------- -------- --------
Total operating expenses 26,645 27,257 92,232 118,544
------- -------- -------- --------
Loss from operations $(8,877) $(14,233) $(36,088) $(66,972)
Interest and other income 44 408 1,287 3,096
------- -------- -------- --------
Net Loss $(8,833) $(13,825) $(34,801) $(63,876)
======= ======== ======== ========
Basic and diluted net loss
per share $ (0.16) $ (0.27) $ (0.66) $ (1.27)
======= ======== ======== ========
Shares used in computation -
basic and diluted 54,422 50,818 53,103 50,296
======= ======== ======== ========
(1) Effective January 2002, in accordance with Financial Accounting
Standards Board Topic No. D-103, reimbursable expenses will be
included in both revenue and expenses. The above fiscal year 2001
results have been revised to reflect reclassification of $278 and
$1,020 application management telecommunication expense
reimbursements and $353 and $972 professional services travel and
related expense reimbursements as revenue and expense for the three
months and twelve months ended December 31, 2001, respectively.
Fiscal 2002 results include $178 and $859 application management
telecommunication expense reimbursements and $154 and $1,097
professional services travel and related expense reimbursements as
revenue and expense for the three months and twelve months ended
December 31, 2002, respectively.
Three Months Ended Twelve Months Ended
December 31 December 31
----------------------------------------
EBITDA (2): 2002 2001 2002 2001
------- -------- -------- --------
Net loss $(8,833) $(13,826) $(34,802) $(63,875)
Amortization expenses 1,154 2,411 2,868 5,864
Interest and other income (44) (408) (1,287) (3,096)
Depreciation 3,337 3,684 11,514 14,919
------- -------- -------- --------
EBITDA $(4,386) $ (8,139) $(21,707) $(46,188)
======= ======== ======== ========
(2) In order to fully assess the Company's financial operating
results, management believes that EBITDA (Earnings before Interest,
Taxes, Depreciation and Amortization), is an appropriate measure of
the operating performance of the Company. However, this supplementary
financial data should be considered in addition to, not as a
substitute for or superior to, operating income, cash flows, or other
measures of financial performance prepared in accordance with
generally accepted accounting principles.
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